Insurance Policy rather than Local Searches?

mrcol1000

We are buying a reprossesed property. Our solicitor has offered us the chance to pay £46 for an insurance policy rather than carrying out local searches. Do you think its worth it? Due to a mix up the sale was slightly delayed and we should have exchanged tomorrow but they have now given us till next Friday. If we get this policy rather than wait for searches we can exchange Monday?
What do you all think? Thanks.

timmyt

if there is no time then fine but otherwise always have searches done

ILW

What will an insurance policy pay if you find that a motorway extension or waste processing plant is about to be built 50ft from your house?

timmyt

loss in value to the property is what they pay out for, if an adverse entry is made, that is the whole point. why what did you think the insurance would cover?

and most define advsere as:

Adverse Entry means any matter that materially affects
the market value of the Property, which would otherwise
have been disclosed in Searches had they been obtained

on the Policy Commencement Date.

ILW

timmyt wrote: »

loss in value to the property is what they pay out for, if an adverse entry is made, that is the whole point. why what did you think the insurance would cover?

and most define advsere as:

Adverse Entry means any matter that materially affects
the market value of the Property, which would otherwise
have been disclosed in Searches had they been obtained

on the Policy Commencement Date.

Thanks
I was just interested as I hadn't heard of it before. Sound pretty good value at £46.00

Richard_Webster

What will an insurance policy pay if you find that a motorway extension or waste processing plant is about to be built 50ft from your house?

Local authority search won't reveal that waste processing plant is to be be built 50' from property! So insurance would not pay out because it wouldn't show on a local search!

Search reveals highway schemes within 200m but only planning decisions relating the actual property being purchased. This is an old chestnut and one that solicitors are constantly having to explain to clients.

The practical answer here is to see if there is an old fairly recent search and then go for the insurance because then you will only be concerned about things that have happened since that old search.

mrcol1000

Richard_Webster wrote: »

Local authority search won't reveal that waste processing plant is to be be built 50' from property! So insurance would not pay out because it wouldn't show on a local search!

Search reveals highway schemes within 200m but only planning decisions relating the actual property being purchased. This is an old chestnut and one that solicitors are constantly having to explain to clients.

The practical answer here is to see if there is an old fairly recent search and then go for the insurance because then you will only be concerned about things that have happened since that old search.

So why I am paying all this money to my solicitor to do these searches when I can just look up planning applications on internet?

Bananamana

mrcol1000 wrote: »

So why I am paying all this money to my solicitor to do these searches when I can just look up planning applications on internet?

Because the local search also deals with land charges, road adoption, some environemental issues amongst other things which aren't available online...

and the lender will require it...

oh and the solicitor probably makes nothing out of the local search fee as its paid straight to the council...